Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6d
ACTION ITEM
Date of Meeting
October 9, 2018
DATE: September 7, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Michael Ehl, Director Airport Operations
Wayne Grotheer, Director Aviation Project Management Group
SUBJECT: North Employee Parking Lot (NEPL) Improvement Project (CIP #C800957) - Phase 1
Design and Construction
Amount of this request:
$570,000
Total estimated project cost:
$615,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) prepare design and
construction bid documents; and (2) advertise and award a major public works contract for
Phase 1 of the North Employee Parking Lot (NEPL) Improvements project at Seattle-Tacoma
International Airport. This request is for both design and construction and is for an amount of
$570,000 for a total Phase 1 estimated project cost of $615,000.
EXECUTIVE SUMMARY
This project will improve basic lot operations and address pavement and infrastructure
rehabilitation. The project will be delivered in two phases. Phase 1 will upgrade existing
facilities and systems to meet standards and support existing operations and customer service
objectives. This includes upgrades to the existing bus driver and supervisor facilities, a minor
rehabilitation of the bus shelter restrooms, replacing an inoperable entry gate, updating the
facility monument sign, upgrading the customer service intercom, and adding additional
electric vehicle charging stations. Design and construction funding are being requested
concurrently to accelerate delivery of these needed Phase 1 improvements. Phase 2 will be
pursued as a separate effort to rehabilitate or replace failing areas of pavement, seal coat and
restripe the entire lot, and replace the sub-grade water and sanitary sewer piping within NEPL.
Phase 2 is not included with this request.
This project was included in the 2018 - 2022 capital budget and plan of finance with a budget of
$6.635 million.
JUSTIFICATION
This project supports the following Century Agenda strategic goals and objectives:
COMMISSION AGENDA – Action Item No. __6d__ Page 2 of 5
Meeting Date: October 9, 2018
Template revised September 22, 2016; format updates October 19, 2016.
1) Advance this region as a leading tourism destination and business gateway by meeting
the region’s air transportation needs at the Airport for the next 25 years.
2) Be the greenest and most energy efficient port in North America by reducing air
pollutants and carbon emissions.
3) Supports the Port’s Diversity in Contracting (DC) program efforts and will include WMBE
aspirational goals associated with this project.
The NEPL supports the employee parking needs for Airport employees and is in need of
targeted renovation and updates since it is 20 years old. The lot is effectively operating at 96%
capacity on a daily basis. Updating this facility and expanding electric vehicle parking will
support the Century agenda strategies and objectives.
DETAILS
Phase 1 of the NEPL Improvements project will address several operational requirements that
have arisen as lot use has reached capacity. Additional bus runs to address the heightened use
have led to more Port bus drivers operating through the lot, requiring an operations supervisor
to be on site to oversee busing activities. Restroom facilities have been well maintained, but
fixtures and counters are showing signs of heavy use and wear. Emergency vehicle and bus
access is reduced because one of the three access gates is no longer operational and is
currently wired closed. The current intercom system only runs to the guard shack, which is not
always manned, and needs to be extended to the bus supervisor’s work station so that
customer service can be improved. NEPL currently operates eight electric vehicle charging
stations, and this project would add two more to locations that were pre-wired for them. The
facility monument sign at the front gate does not have the facility address on it, as required by
fire code, and needs to be updated.
This request includes both design and construction for Phase 1. Phase 2 is not included with
this request but staff expects to return to Commission for Phase 2 authorization in Q2 2019.
The scope and budget for the Phase 2 portion of the project are currently undergoing a detailed
review.
Scope of Work
The first phase of the NEPL Improvements project would:
(1) Remodel bus shelter restrooms to maintain public health and improve the customer
experience
(2) Update entry monument sign would meet fire code requirements; a life safety issue
(3) Construct permanent driver and supervisor break, office, and meeting rooms for
better employee relations and efficiency
(4) Install two electric vehicle chargers to meet increased charging station demand
COMMISSION AGENDA – Action Item No. __6d__ Page 3 of 5
Meeting Date: October 9, 2018
Template revised September 22, 2016; format updates October 19, 2016.
(5) Replace the existing intercom connection to improve customer service and safety by
allowing both employee bus supervisors and guard shack personnel to respond to
queries
Schedule
Design start
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$142,000
$456,000
Construction
$428,000
$6,179,000
Total
$570,000
$6,635,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Status Quo – No upgrades or improvements will be made
Cost Implications: $0
Pros:
(1) No additional cost to the Port with no upgrades or improvements being completed
Cons:
(1) Employee parking will continue to operate with failing and outdated facilities and
systems that do not meet standards or support customer service objectives.
(2) Electric vehicle charging capacity at NEPL is not meeting demand and additional
chargers are needed
This is not the recommended alternative.
Alternative 2 – Construct the entire project in one phase
Cost Implications: Up to $9,109,000
Pros:
(1) Employee parking will utilize upgraded facilities and systems that meet standards and
support their operations and customer service objectives
(2) Completes both phases of work as one construction effort likely resulting in a lower
overall project cost
(3) Installs two electric vehicle chargers to meet increased charging station demand
COMMISSION AGENDA – Action Item No. __6d__ Page 4 of 5
Meeting Date: October 9, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Cons:
(1) Delays completion of the Phase 1 improvements impacting employee productivity and
customer service in a highly utilized facility
(2) Could limit the opportunity for smaller designers and construction firms to bid on the
project
(3) Project scope for the Phase 2 improvements are still in flux, which could lead to
further delays for the Phase 1 improvements
This is not the recommended alternative.
Alternative 3 – Reduced facility upgrades and improvements
Cost Implications: $615,000 for Phase 1, up to $8,494,000 for Phase 2
Pros:
(1) Phase 1 improvements are completed quicker improving employee productivity and
customer service at a highly utilized facility.
(2) Employee parking will utilize upgraded facilities and systems that meet standards and
support their operations and customer service objectives.
(3) Installs two electric vehicle chargers to meet increased charging station demand
Cons:
(1) Project is completed in phases which will likely increase the overall project cost
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate – Phase 1
$615,000
$0
$615,000
Original estimate – Phase 2
$6,020,000
$0
$6,020,000
AUTHORIZATION
Previous authorizations
$45,000
$0
$45,000
Current request for authorization
$570,000
$0
$570,000
Total authorizations, including this request
$615,000
$0
$615,000
Remaining amount to be authorized for
Phase 2
$6,020,000
$0
$6,020,000
Annual Budget Status and Source of Funds
This project (CIP #C800957) was included in the 2018 – 2022 capital budget and plan of finance
as a business plan prospective project with a total budget of $6,635,000 that includes both
Phase 1 and Phase 2 as originally scoped. The capital costs will be recovered through the
COMMISSION AGENDA – Action Item No. __6d__ Page 5 of 5
Meeting Date: October 9, 2018
Template revised September 22, 2016; format updates October 19, 2016.
Employee Parking rate setting. The funding source for this project will be the Airport
Development Fund and future revenue bonds.
Financial Analysis and Summary
Project cost for analysis
$615,000
Business Unit (BU)
Employee Parking
Effect on business performance
(NOI after depreciation)
Assuming the capital costs are fully recovered from
parking fees, NOI after depreciation will increase.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Employee parking operates on a cost recovery basis. Costs for these improvements will be
borne by users of this facility through the monthly parking fee. The operational and
maintenance costs for the NEPL facility are not anticipated to change as a result of this project.
ATTACHMENTS TO THIS REQUEST
Attachment A – Site Map
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None